Exemption under notification 30/2004 dt 09/07/2004, Central Excise

[HIMANSHU JARIWALA]

Copany A LTD(Unit-1) is manufacturing Fully Drawn Yarn(FDY) from Chips and and is excisesable goods. Company A LTD(Unit-2) is procuring Yarn from A LTD (Unit-1) and Further process FDY yarn to produce  monofilament yarn and then sale  the product monofilament yarn from A LTD (Unit-2). Both Unit -1 and Unit-2 are located at diffrent places having distance of about 10 Kilometers. Now A Ltd can take benenift of above notification and pay duty at the time of removal of FDY from unit-1 and clear final product monofilament yarn from unit -2 without payment of duty.

Also please quote any case law in this regard if any.

Regards.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Dear Sir,

Whether you have clarified in this matter? If no please mention along with the latest position.

M. Govindarajan